Licenses are properly classified as intangible assets

Indicate whether the statement is true or false


True

Business

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Working capital turnover ratio indicates:

a. the difference between current assets (excluding inventory) and current liabilities. b. the amount of working capital used in generating sales for the period. c. the bare minimum working capital that a company should have at any time. d. the amount of working capital used as a percentage of the assets owned by the company

Business

In an investment center, the manager has responsibility and authority for making decisions that affect:

A) costs B) revenues C) assets D) costs, revenues, and assets

Business

Temporal aggregation ______.

a. will reduce transportation costs b. will increase the firm’s responsiveness c. will eliminate the need for quality control d. will increase the need for cross-docking

Business

Michard Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:a.The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. b.Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month. c.The ending finished goods inventory equals 20% of the following month's sales. d.The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound. e.Regarding raw materials purchases, 30% are paid for in the month

of purchase and 70% in the following month. f.The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours. g.The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000. If 54,480 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to: A. $95,184 B. $121,968 C. $148,752 D. $89,280

Business